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Your
home is probably your biggest investment. Refinancing is
has an impact on your home's net worth and requires careful
consideration. The decision to refinance depends on several
factors. Here are three main considerations
1.
Reduce your interest rate.
Most
homeowners consider refinancing simply to lower their interest
rate. Lower interest rates mean lower payments. Before
refinancing however you should always weight the upfront
costs against the potential savings in your monthly payment.
Additionally you may want to consider the long-term effects
of adding additional years to your existing loan term.
For example, if you extend your new loan beyond the number
of payments you currently have remaining you could end
up paying more interest over the life of the loan. This
could offset the monthly payment savings. American United
has implemented an on-line calculator to
help you determine when the time is right for you to refinance.
2.
Reduce your mortgage term - pay off your loan faster.
When
interest rates drop, you may want to take advantage of
refinancing to a shorter term. By reducing the term of
your mortgage you could save thousands of dollars in interest
over the life of your loan. This could be done even though
your monthly payment stays the same, or increases. When
you reduce the term of your loan you are simply paying
off your debt sooner and building equity faster. But don't
forget about the lost opportunity of investing your savings
elsewhere. Many investment advisors feel that by keeping
the term of your mortgage the same, you would be better
off investing your monthly savings. Contact you American
United Refinance Specialist today at (800) 555-2035 to
explore all your possibilities.
3. "Cashing
Out" on your equity.
By
borrowing against the equity in your home you can take
advantage of a low cost way to get needed cash. And because
mortgage interest is usually tax deductible, pulling the
equity out of your home is typically less costly than high
rate consumer loans. Most homeowners use the equity in
their home for debt consolidation, home improvement or
to finance the down payment on an investment property.
Contact American United today at (908) 322-5535 or complete
a Quick Quote to see if tapping into the equity in your
home is your best option. (Consult your tax advisor
for tax information.)
The Myth
About Mortgage Pre-Approvals |
